[2FIRSTS] Experts Interpretation of the Related Factors of the Number Planning of E-Cigarette Retail Outlets

Industry Insight by 2FIRSTS
Jun.13.2022
On the 7th of May, 20 of China Tobacco's 33 provincial units announced the planned number of e-cigarette retail outlets.

On the 7th of May, 20 of China Tobacco's 33 provincial units announced the planned number of e-cigarette retail outlets (draft for comments):

 
In addition, Shandong Tobacco, although the specific quantity has not been announced, has published the consultation draft of the classification of prefecture-level cities and the upper limit of the number of e-cigarette retail outlets to per 10,000 people. According to the data of the seventh national census bulletin of Shandong Province and the seventh national census bulletin of Jinan City, the calculation is as follows:

 
On the basis of data from the China Statistical Yearbook, the Statistical Bulletin of National Economic and Social Development, the China Tobacco Yearbook, the 2021 E-cigarette Retail Blue Book, and other sources, the following conclusions can be drawn:

 
1. The anticipated number of e-cigarette retail outlets in 21 provincial units is most closely related to the "number of e-cigarette brand stores and brand collection stores" in 2021. R2=0.9373。


2. There is a strong correlation between the planned number of e-cigarette retail outlets in 21 provincial units and the local GDP in 2021. R2=0.8793。


3.There is a correlation between the planned number of e-cigarette retail outlets in 21 provincial units and the local resident population at the end of 2021. R2=0.7606。

 
4. There is a weak correlation between the planned number of e-cigarette retail outlets in 21 provincial units and local cigarette sales, cigarette sales revenue, the number of cigarette retailers, the number of primary and secondary schools, and other factors. R2 falls between 0.50 and 0.75.


The number of existing e-cigarette brand stores and brand collection stores in 2021, the gross domestic product in 2021, and the number of permanent residents at the end of 2021 are the three factors most closely related to the planned number of e-cigarette retail outlets in each province.

 

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